FE Week hosts House of Commons debate on FE Loans

The Department for Business Innovation and Skills (BIS) are planning to replace funding with loans, for classroom and workplace adults (24+) learners studying Level 3 and above. Their consultation (click here to download) closes on Friday, so FE Week held a debate at the Houses of Commons to discuss the pros and cons.

The proposals for a loans system in further education (FE) were met with caution, and hostility by some. The attendees appreciated the current state of the British economy, as well as the government drive to cut spending and the overwhelming deficit. But the key question was whether introducing loans to FE from 2013/14 was the right policy.

The debate included contributions from Adrian Barley (Chair of the BIS Select Committee), Gordon Marsden (Shadow Minister for FE and Skills), representitives from the University and College Union (UCU), Daniel Khan (Chief Executive of Open College Network London Region) and Denise Brown-Sackey (Principal of Newham College).

The biggest issues surrounded how untested the proposals were and how no-one could predict the consequences of implementing such a significant loans system.

Gordon Marsden, MP for Blackpool South and Shadow Minister for Further Education, Skills and Regional Growth

Gordon Marsden said: “It hasn’t been tried yet. Whether it will be a good idea may become apparent as we go down the route.”

Adrian Barley added: “I think it’s fair to say that in effect this is an experiment and we don’t know what the consequences will be. And there will be many unintended consequences. And it’s very difficult to fully anticipate the way it will work out.”

Liz Shannon, Head of Parliamentary and External Affairs at UCU, said: “We aren’t in favour of having loans in this way. This entire consultation is going on in a bubble, and people aren’t really aware of it.”

 

Caireen Mitchell (Westminster Kingsway College), Denise Brown-Sackey (Newham College) and Liz Shannon (UCU)

Denise Brown-Sackey, Principal at Newham College of FE, said that she was concerned with how an FE loans system would affect her organisation’s ability to recruit adults.

Ms Brown-Sackey said: “I just think it’s an untested model. We need to look at some statistical analysis to see how many Level 3 learner progress onto higher education (HE), and I’d suggest that if it’s a high number of learners you start to have the notion that people are not going to take on the 4 years’ worth of debt to be educated to a degree.”

The proposals, if put into effect, would mean that learners apply for a loan to meet the upfront contribution costs of their course.

Students would receive up to £4,000, and this would be paid by government directly to the FE provider. The loan amount would vary depending on the funding rate of the course or qualification, and learners would only be required to pay the money back once they are earning £21,000 or more.

Any remaining debt would be written off after 30 years.

The whole notion of encouraging learners to take on debt for education is counter intuitive for the government policy on debt.”

The proposals echo the current loans system used in HE, a move which some argue is already controversial and unsuitable for FE.

Mr Barley said: “They’re modelling on the basis of what might be an optimistic assumption of payback of loans in HE. It could well be that if that is extended to FE and part-time courses, then if they go into lower income occupations there will be a higher rate of default of non-payment.”

Shane Chowen, former VP for FE at the NUS and FE Policy Consultant

Shane Chowen, an independent policy consultant, said that he was concerned with how many political figures were talking about FE learners as if they were in HE.

Mr Chowen said: “They use words like mobile, that people are free and that they’re empowered. The reality is that FE learners and nothing like HE learners. They’re not mobile.”

The FE loans system is a difficult proposition, but one many can sympathise with given the country’s bleak economic standing.

Mr Barley said: “It’s a clear demonstration, as with the funding of HE, that this is a finance driven set of proposals. It’s not based on a core educational, philosophical basis, or indeed an economic needs basis.”

Mr Marsden said: “Who knows what the circumstances will be in 2013/14. The present circumstances I would suggest are as adverse as they could possibly be in terms of setting a context for this introduction. So I do think there’s a real issue there.”

“The government is going on the philosophical basis of ‘nudge’ for many of the things they’re trying to do. Not having top down decision making, but putting in frame policies that nudge people in a particular direction,” Mr Marsden added.

The concept of encouraging student debt, however, is a less than perfect solution for tackling the government’s own debt problems.

It’s almost every year that we hear of some kind of horror story where ‘x’ number of people don’t get their loans on time, and that causes all sorts of problems for people paying rent.”

Ms Brown-Sackey said: “The whole notion of encouraging learners to take on debt for education is counter intuitive for the government policy on debt. This government talks constantly about how we’ve got to get the national debt down, and then trying to get learners to increase their personal debt for education and training.”

She added that the majority of the country’s current skill gaps revolved around Level 3 qualifications, and that implementing an FE loans system from this level and upwards was “counter intuitive”.

Ms Brown-Sackey said: “If you’re turning off your potential adult workforce at Level 3, and preventing them in the education and training market because of the amount of debt they’re going to take on, how are you going to get your workforce qualified to Level 3?”

There are other concerns with the government’s proposals though. The consultation states that the Student Loans Company (SLC) will be responsible for loan applications, assessment, the payment to colleges, and the repayments from learners.

Mr Chowen added that he was also concerned with the administrative capacity of the SLC to deal with such a loans system.

“It’s almost every year that we hear of some kind of horror story where ‘x’ number of people don’t get their loans on time, and that causes all sorts of problems for people paying rent.”

Professor Daniel Khan, Chief Executive of the Open College Network London Region

Professor Daniel Khan came armed with  London registration data for the Level 3 Access to HE Diploma in 2009/10. He pointed out that of the 6,882 registrations, 47% were for people age 25 and over. Of these, 72% were female, adding to concerns that the policy of introducing loans for these qualifications would disproportionately affect women.

As the debate concluded attendees expressed their expectation that many of these points would be raised with BIS.  It’ll be a radically different FE landscape in 2013/14, that’s for sure.

Responses to the BIS consultation can be made addressed to Andrew King via email (feloans@bis.gsi.gov.uk) by 21 October 2011. You may also wish to leave a comment on the FE Week website below.

Geoff Russell, CEO, Skills Funding Agency

One crisp Monday morning, back in 2009, Geoff Russell found himself sitting in the government’s Department of Innovation, Universities and Skills, with a shiny new Blackberry in his hand.

The previous Friday, he’d had a call about “a finance job somewhere in Whitehall”, but he wasn’t exactly sure what the job involved. “I was looking at the BBC website when I spotted that I had been appointed the chief executive of the Learning and Skills Council (LSC), which is actually how I found out about it, because no one had actually got round to telling me,” he recalls.

Russell, who is far more candid and witty than his reputation suggests, admits he turned to Google for help. “I hadn’t the faintest idea what the LSC was, let alone what further education was,” he says, laughing.

He may make light of it now, but he couldn’t have taken on the role at a more difficult time. His predecessor, Mark Haysom, had just resigned after the college capital funding fiasco and the quango was due to be disbanded to make way for two new organisations – the Young People’s Learning Agency (YPLA) and the Skills Funding Agency (SFA).

A self- confessed workaholic, Russell went into overdrive working “every single day, every single hour that I wasn’t sleeping.” He even started taking taxis to and from the office so to fit in more Blackberry time (funded out of his own pocket, he adds quickly, when his press manager starts eyeballing him). “I have never done anything so difficult in my life,” he says. “It was the biggest quango in the country, had five million customers, pushed out £50m a day doing all the education of 16-year-olds and it had also been abolished. So it needed to be fixed, run and then shut down… so it was about making sure all those people had a home and that the LSC came to a smooth landing while at the same time, the YPLA and the SFA had a safe take-off.”

In the public sector, they rarely measure what they deliver and they haven’t the faintest idea what it costs – so it is quite hard to measure performance.”

But with over 30 years experience in financial management in both the public and private sectors, Russell seemed well-equipped for the challenge. Raised in Canada, he relocated to the UK in 1988, when he was working with the accountancy giant KPMG. While he discovered early on in his career that he was a “pretty crappy accountant,” fortunately he was a good people manager, something he attributes to his subsequent career success.

Two years after arriving in the UK, Russell was offered a job in the Treasury looking after financial management policy in Whitehall, which proved to be a big culture shock. “I really wondered what sort of fantasy land I was in,” he says. “In the public sector, they rarely measure what they deliver and they haven’t the faintest idea what it costs – so it is quite hard to measure performance.”

He went back to KMPG after a couple of years, as a partner. But with new blood rising up the ranks, he sensed changes were afoot and decided to leave – which is when the LSC role came up.

Russell says he only planned to do a year in the job, but after being sat on by various government officials, agreed to stay on. “I was going round the country saying ‘Don’t worry it’s going to be alright’ to everyone and people started saying to me ‘It’s alright for you, you’re buggering off in April, aren’t you?’ So I felt a bit guilty about that…”

Behind Russell’s self-effacing, easy manner, there is a sense that he would like to say more or even, perhaps, that he has a mischievous side. The UK has the most complicated education system in the world, he says, at one point. “They try and simplify it and I have decided that actually what they do is this thing called ‘complification…’ he breaks off, with a mock-complaint that his press manager is giving him “significant looks.”

And while “things have got progressively more sane” since the LSC closed (he no longer works 18-hour days for one), there are still challenges. Government officials, for starters. “The culture change for someone like me from the private sector, who is used to making decisions rapidly based on, generally, an urgent need, always on imperfect information, without having to ask 16 people… I’m not saying that’s wrong, because that’s the way government works, but it’s hugely frustrating for me, who is not used to working that way,” he says.

But he is positive about moving from the “crisis management” involved in shutting down the LSC to a new “lighter, simpler, less bureaucractic” remit at the SFA. While there is currently a price list of some 10,000 courses, by 2013/14 this will have been reduced to just 30, he says. And a single adult skills funding pot should also make life easier for everyone in the sector, he says.

He bats off accusations that the implementation of this long-awaited simplified funding system has been delayed, saying he is not aware of “any specific commitment as to when we would bring in the new system.”
The SFA is actually running a kind of dress rehearsal at the moment (which he calls “shadow running”), he says, whereby providers will be told how much funding they would have got under the new system, so they can make plans for next year. “If you think about it, if you have a price list of 10,000 and you suddenly compress it down to 30, there are going to be some winners and losers. I’m a relatively impatient person, and I would like to put this system in tomorrow, but you can’t blow up the system even with good intentions. One of the comments we consistently got from the consultation was ‘you need to give us time to adjust, you need to communicate very clearly,’ so we have published quite clearly what we intend to do quite a long time in advance.”

Communication is clearly something Russell prides himself on, and he is well known in the sector for his weekly ‘what I’ve been up to’ emails to staff. But, he says, not everyone is so keen to hear about his weekend away or what his dogs have been up to. “I’ve had emails from quite junior people saying, “That is just drivel. How could you say that?’ And I always write them back and say, ‘Well, I’m sorry you think it was drivel, but actually that’s my life.’ Sometimes I might have to say that 200 people are leaving the organisation or bad things are happening. Some people say, ‘How can you sit there and talk about your dogs and then go on to talk about horrible things in the organisation?’ but the point is… if anyone in this organisation feels that they can write me an email and tell me what they think about the business or themselves or my dogs, that’s the kind of culture I want. I want an open culture where we say what we think.”

 it’s a cliché, to say that you transform people’s lives – but you really do.”

Also unpopular with some staff is his ambition to introduce performance related pay, he says. Some of them have told him, straight out, that they think it is divisive. “And I say, ‘yes it is. It is dividing people who are good and people who need to improve’… because we are an operational organisation it is easier to measure what our people deliver, so to my mind, it is not very healthy to have to pay two people the same amount, one working really hard and the other not doing very much. I think that’s divisive, and I’d rather annoy the people who aren’t doing very much than annoy the people who are contributing.”

While he has no firm plans to move on just yet, if the right opportunity came along, he would consider it, he says coyly, before adding that, earlier this year, he was asked to apply for a job running a university. I tell him I could see him running a new, privately-funded university. “No comment,” barks his press officer, rather too jovially and I wonder if I’ve struck gold.

The biggest reward of working in FE, says Russell, is going out to speak to learners. “I live pretty close to my emotions and some of the stories… I can barely tell this one,” he says, and for a horrible moment, it looks as if he might cry. He goes on to tell a story about a Polish student he met in Leicester who arrived in the UK three years ago with no English and has just been accepted into Oxford. “I have heard stories like that over and over and over again and yes, it’s a cliché, to say that you transform people’s lives – but you really do.”

New art centre at Bournemouth & Poole College

Art and Design are about to take on a fresh hue with the opening of a brilliant new £1m art and design centre at Bournemouth & Poole College. Remarkably, building work on the new block only began in May and it is being seen as a triumph of hard work and dedication of all the teams involved.

Colin Wills, estates manager at the college, said: “The building has been situated and created to make the most of ‘northern light’ which reduces glare, whilst providing soft and restful daylight for the artists.”

“It looks fantastic inside and as word spreads I have no doubt it will attract some great young talent from our region.” College principal Lawrence Vincent said: “Using our own resources we have been able to create an inspirational environment for our talented students.”

The first opportunity for potential students and parents as well as local people to check out the new centre will be on November 3 when an open evening is scheduled.

Victoria cross war hero visits South Thames College

Lance Corporal Johnson Beharry VC visited South Thames College as part of Black History Month today.

The British Army Soldier met over 100 hundreds and spoke about he came to be decorated with the Victoria Cross in 2005, the highest military decoration for valour in the British and Commonwealth armed forces.

Mr Beharry said: “When I first came to London I dropped out of College. I was dealing drugs, drinking and smoking. I turned my life around and now I am the only living British solider still serving in the Army to have been awarded the Victoria Cross.”

Mr Beharry was awarded the prestigious decoration by the Queen for twice saving members of his unit from ambushes in Iraq.

“I have been through a lot, but meeting the Queen was one of the scariest days of my life,” he said.

Mr Beharry endured serious head injuries after falling into a coma and spending time on a life support machine.

Doctors gave Mr Beharry a 1% chance of survival, but he made a miraculous recovery and returned to his role in the Army.

Jordi Williams, a 23 year-old Law student, said: “I’m so happy I met Johnson, I could really relate to his background. He showed me that no matter what you’ve been through you can always come out a better person and be where you want to be.”

Mr Beharry has been working with a number of charities to raise awareness about injured soldiers since winning the Victoria Cross.

The event was organised by South Thames College, Wandsworth Borough Council and the Metropolitan Police.

Sheffield College music students perform for music video with UK rising star

Sheffield College music students have been given the chance to feature in a new music video by Maverick Sabre. The MOBO Awards nominated singer has been visiting various colleges and asking music students to perform with him on his forthcoming single ‘I Need’.

Mr Sabre will use the best performance for a new video that will coincide with the single’s release on November 7. The singer held the recording session at Norton College, part of The Sheffield College, on October 4.

Mr Sabre said. “I know there are hundreds of great young musicians across the country who just want a chance to show what they can do. “I’m really pleased to give some of them an opportunity to get together and be part of a massive collaboration on ‘I Need’.”

Mr Sabre recorded several takes of the song with a student band, as well as smaller groups of musicians. Neil Anderton, Music Course Leader, Norton College, said: “The event was a huge success. Students were buzzing with excitement, rose to the challenge and worked very professionally. “They gained an insight into working to industry standards given the tight deadline to produce quality material for commercial use, and enjoyed the question and answer sessions.”

Mr Sabre later played an acoustic set for the students, and talked to them about his experiences in the music business. Freya Sheldon, a student at Norton College, said: “He made it about the students, not just himself. “This is the first time I have performed in a studio, and it was really interesting to see how it all worked.

There were cameras everywhere, but after a while it felt really natural.” Mr Sabre will be visiting other music colleges including Norwich, Brighton, Leeds, Liverpool, Manchester and Glasgow.

Apprenticeship fair for Harlow College

Young people alarmed by the recent spike in youth unemployment can take advantage of expert advice on entering the world of work when Harlow College plays host to Essex’s first-ever apprenticeship fair today (Monday).

The unique event – which takes place inside the college’s new University Centre Harlow building – will give would-be apprentices the chance to seek information and guidance from employers representing a diverse range of industries.

The college has recently helped set up apprenticeships with Harlow MP Rob Halfon and freelance education journalist Janet Murray. Deputy principal Sue Young said: “There are lots of myths about apprenticeships, from smaller companies thinking they’re unable to afford them, to young people not fully understanding them and thinking they’re only offered in certain jobs.

“By working with local employers, we want to unlock the untapped talent and potential in Harlow and further afield.” Mr Halfon, who last year became the first MP to appoint a paid apprentice, added: “Harlow College is not only one of the top UK colleges in England, but has also led the way in apprenticeships across the board.”

Weston College laying future foundations

Bridges have been built between students and experts after Weston College teamed up with a major builders’ merchants.
Weston College’s Construction and Engineering Centre of Excellence (CECE) has joined with Bradfords as part of a package which will see the centre gain competitive rates for building materials and equipment as well as advice, support and training days.

Bradfords, of Winterstoke Road, in Weston-super-Mare, has already supplied the CECE team with around 30 high visibility jackets.
Construction lecturer Shaun Canniford said: “It’s great news to team up with Bradfords. We have been given around £2,000 worth of materials so far and we are set to save around 30 per cent on usual costs.”

Bradfords, which has an annual turnover of £150 million, was established 200 years ago and covers the South West, Herefordshire and Worcestershire. Bradfords Weston-based Commercial Manager Ed Finch said: “We are proud to be working in partnership with Weston College as we believe the CECE is an excellent facility for learning and developing skills in the construction industry.

“Working closely with the college will allow Bradfords to build relationships with the next generation of tradespeople and help them make the transition when they leave education.”

Footballers Spur on Waltham Forest College

Waltham Forest College has joined forces with Tottenham Hotspur FC to tackle the problem of young people at risk of drifting away from work, education or training after leaving school.

The college and the football club have set up a programme for more than 50 talented young footballers which combines education with football training delivered by Spurs’ academy coaches.

Tom Vittles, the college’s curriculum manager for sport, said: “Learners are required to sign a code of conduct, and will not be allowed to train or play football unless they are up to date with their academic commitments.”

Trevor Duberry, the club’s community development officer, said: “We know that many were unlikely to stay in education, and some had already fallen out of education. We have enticed them back in and this is an opportunity for them to stay engaged.”

The students were paid a motivational visit by two young Tottenham players who have broken into the Premier League club’s first team in European matches this season. Harry Kane, 18, and Andros Townsend, 20, held a series of question and answer sessions with the students, giving advice on their nutrition and training regimes and revealed what inspired them to achieve as professional footballers.

Andros said: “This is a fantastic project for getting young people off the streets.“If there were more programmes like this the world would be a much better place to live in.”